Mixed industry reaction to Coalition’s budget in reply
Industry peak bodies have backed some of the Coalition’s budget-in-reply commitments, but warned they fall short of addressing the roots of the housing crisis.
In his budget reply speech delivered yesterday, 27 March 2025, Opposition Leader Peter Dutton said that the Coalition would boost funding for stalled housing projects and implement large-scale cuts to Australia’s immigration intake.
Dutton also announced that the Coalition, if elected, would “stop the $10 billion Housing Australia Future Fund”, which he stated “has not built a single additional home”.
With recent data showing that Australia is falling short of its National Housing Accord target, the Coalition is backing its housing supply strategy with a new $5 billion infrastructure package aimed at delivering 500,000 new homes.
Ahead of the 2025 federal election, which is now set to be held on 3 May, the Coalition’s slate of announcements have drawn mixed reactions from the nation’s peak property and construction bodies.
The Property Council of Australia said that, in the lead-up to the election announcement, both sides of government have postponed key housing and planning policies until the official campaign begins.
Property Council CEO, Mike Zorbas, said budget week turned into a “pre-game warm up”.
“We can now expect key housing and planning announcements during the campaign proper,” Zorbas said.
The council welcomed the Coalition’s announcement of a large-scale trainee incentive scheme for employers who take on apprentices and trainees whose occupations are on the skills priority list.
Zorbas said the new policy would help accelerate progress towards the national housing target.
“Hyper-scaling traineeship incentives is welcome. BuildSkills Australia estimates we need another 90,000 workers nationwide to get to our 1.2 million homes target by 2029,” Zorbas said.
Nonetheless, the CEO highlighted that the national housing policy priority must focus on streamlining investment and planning processes to “get more homes out the ground at less expense”.
“Pipelines of land often take up to a decade to achieve the necessary planning and environmental approvals and navigate utility delays and expense,” Zorbas said.
“The Coalition’s approach to federal approvals and last-mile infrastructure will help make significant progress in these areas,” he explained.
While the Coalition recently pledged to streamline the foreign investor approvals, Dutton yesterday vowed to cut immigration by 25 per cent, arguing that increased housing demand and slow construction had led to increased rental and property prices
Similarly, last month, the Labor government announced a two-year ban on foreign purchases of existing homes.
Zorbas called on both major parties to remember the benefits that international finance and labour previously yielded in Australia.
“In building the assets our growing communities need, both major parties should remember that international investment and skilled migration have shaped our cities for the better for over 80 years,” Zorbas said.
“We will need to grow skilled migration in coming years to help bridge our skills gaps, sustain our tax base and support our ageing population,” he concluded.
Master Builders Australia recognised the Coalition’s budget reply effort to acknowledge the crucial role construction businesses will play in addressing the housing crisis, including offering incentive payments to employers who hire apprentices and trainees in “critical skills areas”.
The peak body said that the building and construction industry has been plagued by “chronic and critical workforce shortages” that have seen demand far outpace capacity to build.
“Without a thriving building and construction industry, we won’t be able to build more homes for Aussies,” Master Builders Australia CEO, Denita Wawn, said.
“We need to attract and retain our next generation of tradies, and Master Builders supports the Coalition’s sensible training pipeline and supporting incentives for both workers and their employers,” she added.
Master Builders also commended the Coalition’s pledges to establish a building and construction industry watchdog and an Australian Federal Police (AFP) led taskforce to address criminal conduct in the sector.
In light of recent corruption allegations within the Construction, Forestry and Maritime Employees Union, Master Builders said the measures would help restore integrity to the industry.
“It is clear the industrial relations system in building and construction is broken, and law enforcement is inadequately resourced to fix the corrupt, unlawful and violent behaviour we have seen reported in recent months,” Wawn said.
Following the Coalition’s intentions to cut the Housing Australia Future Fund, Wawn urged the party to incentivise continued investment in the social and affordable housing market.
“Should the Housing Australia Future Fund be scrapped, Master Builders urges the Coalition to ensure that investment in the social and affordable housing market continues to be supported,” Wawn said.
While Wawn said that both major parties have put forward “some sensible housing measures”, she acknowledged that “there is still a long way to go”.
“This federal election, Master Builders will hold both major parties to account and advocate for policies that are focused on increasing supply and productivity while reducing construction costs and build times,” Wawn concluded.